Question 1

CAGR stands for …………………

Accepted Answer

CAGR stands for Compounded Annual Growth Rate, which is a measure of the mean annual growth rate of an investment over a specified time period longer than one year. It represents one of the most accurate ways to calculate and determine returns for anything that can rise or fall in value over time.

Question 2

………………… are simply the annual gains that an investment has earned over a specific period of time.

Accepted Answer

Annualized Return refers to the geometric average amount of money earned by an investment each year over a given time period. It is used to compare the returns of investments over different periods.

Question 3

The performance of a scheme is reflected in its ……………..

Accepted Answer

The performance of a scheme, particularly in the context of mutual funds or investment schemes, is reflected in its Net Asset Value (NAV). NAV represents the per-share market value of all the securities in a fund's portfolio.

Question 4

…………………. is a myth about Mutual Fund Investment in India.

Accepted Answer

Demat account is not compulsory to invest in Mutual funds.

Question 5

Abridged version of OD is called …………..

Accepted Answer

KIM stands for Key Information Memorandum, which is an abridged version of the Offer Document (OD) in mutual funds.

Question 6

--------------------- is a supplementary document that contains additional information of the fund.

Accepted Answer

SAI stands for Statement of Additional Information. It is a supplementary document to a mutual fund's prospectus that contains more detailed information about the fund, including its operations, risks, and financial condition.

Question 7

……………. approve the contents of the Offer document

Accepted Answer

The Trustee is responsible for approving the contents of the Offer document, as they act in the interest of the unit holders and ensure the AMC adheres to the fund's objectives and regulatory requirements.

Quiz 7: Mutual Fund Investment: Understanding Risks, Returns, and Regulations